The decline in the dollar index could be the key to Bitcoin's rise.

Real Vision analyst Jamie Coutts, who made a remarkable assessment of the cryptocurrency market, predicted that Bitcoin could experience a 200 percent increase in this cycle and its price could reach six-digit levels. #Bitcoin investors are following this prediction carefully.

Coutts stated that Bitcoin's value could increase by two to three times, and that this prediction is more cautious when compared to the nineteen-fold and six-fold increases in 2017 and 2020, respectively. This is quite remarkable considering Bitcoin's previous increases.

However, according to Coutts, for this target to be realized, the US Dollar Index (DXY) needs to fall well below the 101 level. This decline in Bitcoin investment could occur as a result of changes in central bank interventions.

Currently at 102.65 levels, the DXY shows that the dollar maintains its strength against other major currencies. Coutts, who previously suggested that Bitcoin could gain 75 percent by November 2023, commented that a larger upward move is now possible based on the global liquidity model.

This prediction was shaped by the impact of significant liquidity injections, especially from the Bank of Japan (BoJ) and the People’s Bank of China (PBoC). Bitcoin could be positively affected by these liquidity injections. Last month, the BOJ and the PBoC provided 41 percent of the global liquidity increase.

Coutts revealed that the BOJ added $400 billion and the PBoC added $97 billion, for a total of $1.2 trillion in contributions to the global monetary base.